Exhibit 10.2
EXECUTION
VERSION
SECOND AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT (hereinafter referred to as the
“ Amendment ”) dated as of July 14, 2008,
by and among EXCO OPERATING COMPANY, LP (formerly known as EXCO
Partners Operating Partnership, LP) (“ Borrower
”), CERTAIN SUBSIDIARIES OF BORROWER, as Guarantors (the
“ Guarantors ”), the LENDERS party hereto (the
“ Lenders ”), and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (“ Administrative Agent
”). Unless the context otherwise requires or unless
otherwise expressly defined herein, capitalized terms used but not
defined in this Amendment have the meanings assigned to such terms
in the Credit Agreement (as defined below).
WITNESSETH:
WHEREAS
,
Borrower, Guarantors, Administrative Agent and Lenders have entered
into that certain Amended and Restated Credit Agreement dated as of
March 30, 2007, as amended by that certain First Amendment to
Amended and Restated Credit Agreement dated as of February 20,
2008 (as the same may further be amended, restated, supplemented or
otherwise modified from time to time, the “ Credit
Agreement ”); and
WHEREAS
,
Borrower has requested that the Administrative Agent and the
Lenders amend the Credit Agreement to, among other things, permit
the incurrence of additional unsecured Indebtedness of the Borrower
pursuant to the terms and conditions of a senior unsecured term
loan facility in an aggregate principal amount not to exceed
$500,000,000.
NOW,
THEREFORE , for and in consideration of
the mutual covenants and agreements herein contained and other good
and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged and confessed, Borrower, Guarantors,
Administrative Agent and the Lenders hereby agree as
follows:
SECTION 1.
Amendments to Credit Agreement. Subject to the satisfaction or waiver in
writing of each condition precedent set forth in
Section 2 hereof, and in reliance on the
representations, warranties, covenants and agreements contained in
this Amendment, the Credit Agreement shall be amended in the manner
provided in this Section 1 .
1.1
Additional
Definitions. Section 1.01 of the Credit Agreement shall be and it
hereby is amended by inserting the following definitions in
appropriate alphabetical order:
“ Senior Unsecured Term Loan
Facility ” means a senior unsecured term loan facility
pursuant to which certain financial institutions and other entities
have agreed to provide Borrower with unsecured term loans;
provided that (i) the stated maturity date of such term
loans is not later than December 15, 2008 and (ii) the
covenant, default and remedy provisions with respect to such term
loans are not materially more restrictive than those set forth in
this Agreement.
“ Term Loans ” means the
senior unsecured term loans outstanding under the Senior Unsecured
Term Loan Facility.
1.2
Indebtedness.
Section 7.01 of the Credit Agreement shall be and it
hereby is amended by (i) renumbering clause (h) of such
section to be clause (i) of such section and
(ii) inserting a new clause (h) immediately following
clause (g) to read as follows:
(h)
unsecured Indebtedness of
the Borrower under the Senior Unsecured Term Loan Facility in an
aggregate principal amount not to exceed $500,000,000 at any time
outstanding; and
1.3
Financial Covenants;
Consolidated Current Ratio . Clause (a) of
Section 7.11 of the Credit Agreement shall be and it
hereby is amended and restated in its entirety to read as
follows:
(a)
Consolidated Current
Ratio .
The Borrower will not permit the Consolidated Current Ratio as of
the end of any fiscal quarter ending on or after June 30, 2007
to be less than 1.00 to 1.00; provided that for purposes of
determining compliance with this Section 7.11(a), the
calculation of Consolidated Current Liabilities as of the end of
any fiscal quarter ending on or before December 31, 2008,
shall not include any Indebtedness of the Borrower under the Senior
Unsecured Term Loan Facility to the extent such Indebtedness is
permitted under Section 7.01(h).
1.4
Restrictions on Certain
Prepayments. Article VII of the Credit Agreement
shall be and it hereby is amended by inserting the following at the
end of such Article as Section 7.13:
Section 7.13
Senior Unsecured Term Loan
Facility Restrictions.
Prior to the termination
of all Commitments and the payment and performance in full of the
Obligations, the Borrower will not, nor will it permit any
Restricted Subsidiary to, directly or indirectly, retire, redeem,
defease, repurchase or prepay prior to the scheduled due date
thereof any part of the principal of, or interest on, the Term
Loans; except that the Borrower may retire, redeem, defease,
repurchase or prepay the Term Loans (including any premium on the
prepaid principal amount of such Indebtedness) at any time;
provided that (i) no Default has occurred and is continuing or
would result from the making of such retirement, redemption,
defeasance, repurchase or prepayment, and (ii) after giving
effect to such retirement, redemption, defeasance, repurchase or
prepayment, the Aggregate Commitment exceeds Aggregate Credit
Exposure by an amount equal to or greater than ten percent (10%) of
the Aggregate Commitment.
SECTION 2.
Conditions. The amendments to the Credit Agreement
contained in Section 1 of this Amendment, shall be
effective upon the satisfaction of each of the conditions set forth
in this Section 2 .
2.1
Execution and
Delivery . Each Credit Party, the Majority Lenders
and the Administrative Agent shall have executed and delivered this
Amendment.
2
2.2
No
Default .
No Default or Event of Default shall have occurred and be
continuing or shall result after giving effect to this
Amendment.
2.3
Other
Documents . The Administrative Agent shall have
received such other instruments and documents incidental and
appropriate to the transaction provided for herein as the
Administrative Agent or its special counsel may reasonably request,
and all such documents shall be in form and substance satisfactory
to the Administrative Agent.
SECTION 3.
Representations and Warranties of Borrower
. To induce the
Lenders to enter into this Amendment, each Credit Party hereby
represents and warrants to the Lenders as follows:
3.1
Reaffirmation of
Representations and Warranties/Further Assurances
. After giving
effect to the amendments herein, each representation and warranty
of such Credit Party contained in the Credit Agreement or in any
other Loan Document is true and correct in all material respects on
the date hereof (except to the extent such representations and
warranties relate solely to an earlier date, in which case such
representations and warranties shall have been true and correct in
all material respects as of such date).
3.2
Corporate Authority; No
Conflicts . The execution, delivery and performance
by such Credit Party of this Amendment and all documents,
instruments and agreements contemplated herein are within such
Credit Party’s corporate or other organizational powers, have
been duly authorized by necessary action, require no action by or
in respect of, or filing with, any court or agency of government
and do not violate or constitute a default under any provision of
any applicable law or other agreements binding upon such Credit
Party or result in the creation or imposition of any Lien upon any
of the assets of such Credit Party except for Liens permitted under
Section 7.02 of the Credit Agreement.
3.3
Enforceability
. This Amendment
constitutes the valid and binding obligation of such Credit Party
enforceable in accordance with its terms, except as (i) the
enforceability thereof may be limited by bankruptcy, insolvency or
similar laws affecting creditor’s rights generally, and
(ii) the availability of equitable remedies may be limited by
equitable principles of general application.
SECTION 4.
Miscellaneous .
4.1
Reaffirmation of Loan
Documents and Liens . Any and all of the terms and provisions
of the Credit Agreement and the Loan Documents shall, except as
amended and modified hereby, remain in full force and effect.
Each Credit Party hereby agrees that the amendments and
modifications herein contained shall in no manner affect or impair
the liabilities, duties and obligations of any Credit Party under
the Credit Agreement and the other Loan Documents or the Liens
securing the payment and performance thereof.
4.2
Parties in Interest
. All of the terms
and provisions of this Amendment shall bind and inure to the
benefit of the parties hereto and their respective successors and
assigns.
4.3
Legal
Expenses. Each Credit Party hereby agrees to pay
all reasonable fees and expenses of special counsel to the
Administrative Agent incurred by the Administrative Agent
in
3
connection with the preparation, negotiation
and execution of this Amendment and all related
documents.
4.4
Counterparts
. This Amendment may
be executed in one or more counterparts and by different parties
hereto in separate counterparts each of which when so executed and
delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate
counterparts and attached to a single counterpart
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